Upheld: irresponsible lending / inadequate affordability checks complaint against Gain Credit LLC trading as Drafty
Financial Ombudsman decision DRN-6226204 of 2026-04-02T00:00:00+00:00. irresponsible lending / inadequate affordability checks complaint against Gain Credit LLC trading as Drafty. Outcome: Upheld.
Decision detail
| Reference | DRN-6226204 |
|---|---|
| Decision date | 2026-04-02T00:00:00+00:00 |
| Firm | Gain Credit LLC trading as Drafty |
| Product | running credit facility / line of credit |
| Claim type | irresponsible lending / inadequate affordability checks |
| Outcome | Upheld |
| Remedy | Drafty must: (A) refund all interest, fees and charges applied to the facility from June 2023; (B) calculate 8% simple interest on refunded amounts from the date of original payment to settlement; (C) pay Mrs O the total of A plus B; (D) remove any adverse payment information about the facility from Mrs O's credit file. Tax will be deducted from interest as required by HMRC. |
Summary
Mrs O complained that Drafty granted her a running credit facility without conducting sufficient affordability checks. Drafty approved an £880 facility in June 2023 and increased it twice to £1,680 by June 2024. While Drafty verified Mrs O's income of £2,601.87 and assessed living costs at £1,590, it failed to account for £25,000 in revolving credit with estimated monthly payments of £500 in its affordability assessment. The ombudsman found that Drafty's own credit file data showed Mrs O had total monthly commitments exceeding her income, making the facility unaffordable. The complaint was upheld and Drafty was ordered to refund all interest, fees and charges plus 8% simple interest, and remove adverse credit file information.
The Ombudsman's reasoning
Drafty was required to carry out proportionate checks to ensure Mrs O could repay the facility sustainably. While Drafty verified Mrs O's income and checked living costs against statistical data, it failed to properly account for all existing credit commitments. The raw credit file showed £25,000 in revolving credit with estimated monthly payments of £500, which Drafty's affordability calculation omitted. When all known figures are combined (£1,590 living costs + £720 loan payments + £500 revolving payments = £2,810), they exceed Mrs O's verified income of £2,601.87. Even if the exact figures were disputed, the overall debt burden of over 50% of income should have prompted further investigation. Bank statements would have revealed the true position of Mrs O's finances.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Gain Credit LLC trading as Drafty, all decisions | 14 | 7% |
Source
Read the original decision on the Financial Ombudsman Service website